CEO Council: Van Hollen on Spending, Entitlements

During the WSJ CEO Council, Maryland Rep. Chris Van Hollen discusses what Congress is willing to do to gain savings from entitlements.

This transcript has been automatically generated and may not be 100% accurate.

... I ... let's talk about sad side of Austin Goolsbee who was up on stage this morning talked about you know trillion over ten years and tax cuts a trillion in discretionary spending ... a trillion in entitlement cuts but is a couple people pointed out ... the Everest got any texture Ram trillion ... how do you how do you get a trillion dollars in you know what what what are you willing to do to Medicare ... that will have lasting say it's ... up over a ten-year period and will turn out like some of these Provider Cuts turnout in other last for years so and then ... everybody goes in reverse isn't because they don't work right so they're they're couple things we need to do ... I'm ... and I'm open to ... all ideas in this area you're probably get some but what we did let ... me just say I'm sure ... that the head ... so ... I'm we need to move Medicare away from a fee for service system we've begun to do that because fee for service system ... contains no incentives for anybody in the system ... to contain costs doesn't create incentives for the patient ... to contain costs it doesn't ... create incentives for the providers to contain costs ... and we've actually begin to put in place the building blocks ... to get their accountable care organizations bond payments ... I think we can make significant savings in the area were called dual eligible people are on Medicare and Medicaid ... on ... a relatively small percentage of the overall Medicare Medicaid population but a very high percentage of the costs ... and or Watson Misaligned incentives between the Medicare and Medicaid payment you can do that ... you can do things like the book of re designing Medigap policy because right now ... some Medigap policy is actually ... create incentives for people to spend a lot more on ... Medicare ... these are ideas that had been discussed try and ... contain costs what I what I think we should avoid at least in the first instance ... is ... not trying to contain health care costs ... but simply ... transferring ... those costs ... onto other individuals that are first poker should be on trying to contain overall health care costs which is you know ... consumer that eighteen percent of our GDP is expected to rise rapidly of course one way to get away from fee for services to move sorts toward some sort of a premium support when you know you're so much money you get you out there shopping the marketplace ... and by which you can ... right ... well ... well what we know is that the nonpartisan Congressional budget office ... to pack ... and their conclusion was that it does not contain costs that it simply transfers cos there's no doubt you've got fixable ... that puts and it's not fixable in a way that it would contain costs well that that ... not according to Congressional budget office analysis with what they concluded was that ... high if you ... simply create don't provide a voucher ... to go out in the private health care system if you as you know ... in the private health care system healthcare costs the bin rising ... I did at least the same rate ... as within the Medicare system insight Medicaid ... has been as it's obviously has serious problems with Medicaid ... costs of reason and a much lower rate is you know the Medicare Medicare is risen that slightly lower rates ... on a per capita basis ... than in the in the private health insurance markets are simply transferring ... somebody out of Medicare ... into the private health insurance market it will save Medicare money but it will save Medicare morning for Congressional budget office ... by requiring premiums to go up dramatically on these individuals ... whose median income is twenty three thousand dollars for ...